Money Is The Key To Happiness

News: Per capita GDP, not GDP itself, is the real measure of national progress GDP does not reflect a society’s well-being. GDP captures neither population decline nor welfare. Moreover, it doesn’t measure social indicators of wellbeing such as the health, education, and welfare of children. In this context, many alternatives have been proposed such as… Continue reading Money Is The Key To Happiness

Building a resilient economy

What is the news? Amidst the hopes of a V-shaped recovery of the Indian economy, the National Statistical Office (NSO) had recently estimated that India’s economic growth has surged to 20.1% in the April-June quarter, despite a devastating second wave of COVID-19. It also stated that the gross domestic product (GDP) had contracted by 24.4% in… Continue reading Building a resilient economy

The irrelevance of Indian GDP estimates to most of our citizens

Synopsis: Economic recovery is unlikely to prove sustainable when most basic indicators of human development show a worsening of our situation. Introduction Estimates of gross domestic product (GDP) for the first quarter of fiscal year 2021-22 were released on 31 August. This year’s first-quarter estimate shows a 20%-plus GDP growth. However, the real issue is… Continue reading The irrelevance of Indian GDP estimates to most of our citizens

Where’s The V-Shaped Recovery?

Synopsis: Govt should recognize the evidence of distress and job loss in India. V-shaped recovery is still far away. Introduction According to the government, India’s economy is bright and strong since headline GDP grew 20% in the recent quarter after falling 24% in the same quarter last year. However, it is important to evaluate the… Continue reading Where’s The V-Shaped Recovery?

The economic reforms — looking back to look ahead

Synopsis: Systemic policy reforms are required to unlock creativity and innovation in the economic system, raise the total factor productivity (TFP) and to achieve higher growth. Introduction The crisis caused by the pandemic in the country and at global level has led to a debate about new approaches to manage the economy and the future… Continue reading The economic reforms — looking back to look ahead

Credit Where It’s Due – “on credit growth”

Synopsis: Lack of Credit growth has lagged economic recovery. Here’s why that’s about to change. Introduction April-June GDP estimates show that there is strong evidence of a sharp recovery in the economy after second-wave lockdowns. Although broad-based indicators of real economic activity like mobility, energy demand, and GST e-way bill generation are now substantially higher… Continue reading Credit Where It’s Due – “on credit growth”

Our GDP needs the HDP

Source: Indian Express Relevance: Achieving sustainable and inclusive growth for all. Synopsis: Despite the progress achieved in the field of technology; inequality and deprivation are still an important issue that needs to be addressed in India. Measuring Human Development Product might be a solution because GDP just indicates economic growth, while Human Development Product can… Continue reading Our GDP needs the HDP

Explained: What is GDP and why it matters

News:Recently,due to a decline in India’s Gross Domestic Product(GDP) growth rate,the ruling party has questioned the merit of the basic variable used to map economic growth that is, the GDP. Facts: Origin of GDP and GNP: The modern-day definitions of GDP and GNP can be traced back to Simon Kuznets who was entrusted with the… Continue reading Explained: What is GDP and why it matters

Gross Domestic Product growth falls to 4.5% in Q2 of 2019-20

News:According to data released by the Central Statistics Office (CSO),India’s Gross Domestic Product(GDP) growth has fallen to 4.5% for the second quarter (July-September) of the year 2019-20. Facts: About the slowdown in GDP growth rate: The GDP growth rate has slowed down for the sixth consecutive quarter at 4.5% from 5% in the preceding quarter.… Continue reading Gross Domestic Product growth falls to 4.5% in Q2 of 2019-20

Two ways to look at GDP

Researchers and academicians have raised doubts about the new methodology employed by the Central Statistics Office(CSO) to estimate India’s gross domestic product(GDP). In 2015,CSO had introduced a new series of National Account Statistics. The new series made several changes to estimate India’s gross domestic product(GDP).In particular,it revised the base year from 2004-05 to 2011-12.  However,the… Continue reading Two ways to look at GDP

GDP numbers suggest high growth in the medium term: panel

Finance Commission has held discussions with the finance ministry on fiscal and economic management of the country, During the meeting,15th Finance Commission has said that the GDP numbers suggests continued high growth over the medium term even though there have been fluctuations within the overall global trend. Gross domestic product(GDP) is the monetary value of… Continue reading GDP numbers suggest high growth in the medium term: panel

Govt:No impact of NSSO survey on GDP numbers

The ministry of statistics and programme implementation (MOSPI) has clarified that there will not be any impact of National Sample Survey Office (NSSO) report on gross domestic product (GDP) data. This clarification came after NSSO report had found that 36% of the companies in the MCA21 database maintained by the ministry of corporate affairs(MCA) could… Continue reading Govt:No impact of NSSO survey on GDP numbers

China’s GDP grows at 6.4% in Q1,defies expectations slowdown

China’s economy grew at a steady rate of 6.4% in the first quarter.The improvement in growth is due to (a)industrial production jumped sharply and (b)consumer demand showed signs of improvement. China has also enhanced its fiscal stimulus to shore up growth by  announcing billions of dollars in additional tax cuts and infrastructure spending. However,the economic… Continue reading China’s GDP grows at 6.4% in Q1,defies expectations slowdown

WB pegs India’s GDP growth at 7.5%

According to World Bank report,India’s GDP growth is expected to accelerate moderately to 7.5% in Fiscal Year 19-20.The growth will be driven by (a)investment strengthening (b)improved export performance and (c)resilient consumption. The report said that on the demand side,domestic consumption has remained the primary growth driver but gross fixed capital formation and exports also made… Continue reading WB pegs India’s GDP growth at 7.5%

India will be the third-largest economy by 2030: Jaitley

Finance Minister has said that India is expected to become the third largest economy in the world by 2030 with Gross Domestic Product(GDP) touching USD 10 trillion.The growth will happen due to consumption and investment growth. Currently,the size of the Indian economy is about USD 2.9 trillion.Further, India oscillates between the fifth and the sixth… Continue reading India will be the third-largest economy by 2030: Jaitley

RBI cuts repo rate to 6%, lowers GDP forecast to 7.2%

The six-member Monetary Policy Committee of the Reserve Bank of India has cut its benchmark policy rate,repo rate by 0.25% to 6%.Repo stands for ‘Repurchasing Option’.It refers to the rate at which commercial banks borrow money from the RBI.The rate cut comes in the backdrop of a slowdown in consumption. demand,weakening investment activity and overall… Continue reading RBI cuts repo rate to 6%, lowers GDP forecast to 7.2%

Fitch cuts India GDP growth forecast for FY20 to 6.8%

Global rating agency Fitch has cut its India’s Gross domestic product(GDP) growth forecast to 6.8% for 2019-20 from the earlier estimate of 7%.It was cut due to weak momentum in manufacturing and agriculture.However,it said India’s economic growth is expected to be 7.1% in 2020-21. The weak momentum has been due to (a)credit availability has tightened… Continue reading Fitch cuts India GDP growth forecast for FY20 to 6.8%

China targets 6 to 6.5% in shadow of trade war with U.S

China lowered its economic growth target for the year 2019 to between 6 to 6.5% of Gross Domestic product(GDP). The cuts to the GDP growth target comes in the backdrop of (a)Chinese economy facing pressure from a persistent slowdown (b)Rising trade tensions between US and China and (c)slowing global economy. Chinese Government have announced various… Continue reading China targets 6 to 6.5% in shadow of trade war with U.S